Loading ...Here Here on that one. The US employees need some inflation for anexcuse. I remember the 1970s, constantly climbing prices. Everybody got good raises. I got raises every few months. The so-called inflation was a perfect excuse for more money. Even the employers were making money.
HOWEVER, that was before globalization. We made EVERYTHING at home here. The climbing prices were blamed on climbing wages. The so-called inflationary 1970s was propaganda.
Inflation, in the increase of money supply that took place 1934 to 1971. The results of THAT real inflation, higher prices lagged and showed up later in the ’70s. All thru the 1970s the Fed RAISED rates and sucked money OUT.
Removing money with rates to 21% was deflation. Which also LAGGED and falling prices showed up in 1980 to 2001. REMEMBER anyone?? If Volker did not put a high rate headwind in front of the climbing prices, we may have had a real hyperinflationary situation.
Raising CD rates to 18% pretty much forced everyone to sell stamps AU AG etc and suck up some free money at the bank. Today its all opposite. Low rates forcing people to spend it.